I've tried doing that with several versions of the driver and it still doesn't seem to be working for me.
I click "update driver", then have-disk, then select the location of the driver files, but when I do it says that I already have the latest version of the driver (the mouse driver) so it doesn't install???

I have exactly the same problem, tried updating drivers, says it has the best version already.
Tried uninstalling, it restarts once, then automatically installs the driver upon booting up at which point it works, but can't be calibrated and says it needs to restart again. Then it stops working again.
Can't do anything with it, anyone had this problem and resolved it?

Ok, I've solved my problem.
The problem was that Windows 7 always automatically installed a driver for the PS/2 Mouse, which obviously is the touchscreen.
Every time I uninstalled their driver and restarted, it reinstalled it as soon as I'd rebooted.
I solved it by following this (remember to plug in your mouse/keyboard/flashdrive first as you won't be able to get drivers for a while): http://www.addictivetips.com/windows...windows-vista/
How I did it was to enable the setting they said, uninstall the PS/2 mouse from device manager, restart, revert the change made before in gpedit.msc, then go into Device Manager, under unknown devices it should be listed as an unknown device, then install whatever driver you want. Presumably the HID one. It only took about 2 days to figure out too..

i have the same problem like you. i am not able to uninstall ps/2 mouse. i tried to change in gpedit.msc but once i remove the mouse driver it asks for restart and once restarted the driver automatically installs. i tried these two methods
1. i tried by changing to no automatic driver install
2. your method of gpedit

but still there is no solution. please help us to install the touch input so that i can use my item with windows 7. advance thanks